Which of the Following Is NOT a Source of 'Failure

question 14

Multiple Choice

Which of the following is NOT a source of 'failure' of the free market?

• A) imperfectly competitive markets
• B) external costs and benefits
• C) fast market adjustment to disequilibrium
• D) lack of knowledge by consumers

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Definitions:

Value Creation

The process by which goods or services are provided that offer value to customers, thereby generating benefit to the producer or provider.

Comparative Advantage

a principle of economics that states a country or entity should produce goods and services for which it has a lower opportunity cost than its trade partners.

Specialization

involves focusing on a narrow range of products or services to gain efficiency and improve competitive advantage.

Exchange

The act of giving one item in return for another, often seen in finance and trade as the swapping of goods, services, or financial instruments.